What Is Binance Lending?

Binance Lending is a method of user lending a particular amount of their Crypto assets (BNB, USDT, ETC…) to the Binance exchange and getting interest when the loan expires, which includes: Lender – The user and Borrower – Binance.

This form is identical to the Staking Rewards Program of some Binance coins, and it receives interest. The distinction here is that in Binance Lending, Binance pays the interest on your behalf. The projects are the payers in Staking Rewards.

About Binance Lending

The official launch date is August 28, 2019 at 13:00. The loan period will last for 30 to 120 days and payment of interest begins immediately after maturity.

• First come, first served – first come, first served.

• Each cryptocurrency has a unique Lot.

• The interest rate will vary according to the period and Binance’s policy.

Some Binance Lending Features That You Should Know

Advantages

The platform has a SAFU system in place to protect/compensate users’ funds, giving you some pieces of mind when owning assets on the exchange. This includes lending.

Joining is as simple as a few mouse clicks. At the end of the loan term, the user receives both the principal and the interest.

Large Lending Volume with a wide range of cryptocurrencies with the amount over 300 cryptos available.

Using idle assets of users to maximize earnings for Holders on the floor.

Disadvantages

Rates of interest that are uncompetitive. The table above allows you to compare interest rates. The majority of these interest rates are either the same as or lower than those of comparable projects.

The Lending interest rate is immediately noticeable as being average. Even less enticing than other cryptocurrency concepts like USDT, ETC.

Who should join Binance Lending?

Binance’s goal is to encourage users to engage, which increases the number of idle assets on the exchange. The present interest rate range will depend on the lending period. Of course, it is not suitable or appealing to everyone.

This feature is suitable for people who have idle assets on the exchange and wish to make more profit from them but lack the time to trade and profit. Binance financing will be an appropriate and safe choice.

The platform has implemented a SAFU policy to protect/compensate for user assets. As a result, individuals who hold bitcoin on this exchange may feel a little safer.

Binance Lending User Guide

Before joining, you need to know some input parameters as follows:

• Lot Size: Loan amount in each Lot.
• Maximum Subscription: The total amount of Lot that a user can join.
• Coupon Per Lot: Profit received after the loan term expires.
• Value date: Starting date of interest calculation.
• Redemption Date: Interest and principal payment date.

How Binance Lending Works

Step 1: Go to the page at https://www.binance.com/en/lending.

Choose the sort of cryptocurrency you wish to lend and click Subscribe.

Step 2: Enter the Lot amount you wish to lend.

For example, in the illustration, I wish to lend 100,000 BNB for 120 days, the APR will be 5.9% and the interest will be equivalent to 1,939.68 BNB. The longer period you choose, the higher interest you gain.

Then tick the box that says “I have read and agree to the Terms of Service.” Click the Confirm Purchase button.

Step 3: After completing the Purchase step successfully, Binance will automatically deduct the corresponding money. Select Successful Purchase to obtain a list of your loans.

Step 4: When the loan matures, Binance pays the principal and interest. Keep in mind that you must have enough balance and select the suitable Lots.

Some suggestions for users

When you join Binance Lending, you should keep the following factors in mind:

Always ensure that your account balance is sufficient to participate.

The profit is provided on an annual basis. In actuality, the daily interest rate will vary, and the loan term will last for 30, 60, 90 days or even be flexible for some selected coins. Before officially joining Lending, you should calculate the entire interest received after this time.

Only join while the asset is idle. This form is not appropriate for those of you who trade, buy, and sell on a daily basis.

You should constantly psychologically prepare for the possibility of Crypto joining in discount financing…

DISCLAIMER: The Information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.

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